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Earnings Call Transcript

Ahluwalia Contracts (India) Earnings Call Transcript: Key Takeaways

Ahluwalia Contracts reported a severe margin collapse in Q1 FY27, with EBITDA margins halving to 4.29% due to labor cost spikes and a one-time project bill write-down.

Guidance and delivery
Management target Revenue 15.0% FY27
Highlights
Revenue growth12% YoY growth driven by large project execution.
MarginsStructural contraction; margins crashed from 8.6% to 4.3% YoY.
Order bookHealthy order book at ₹20,663 crores, roughly 4x execution ratio.
Demand visibilityStrong sector demand; visibility from large public and private projects.
Management confidenceDefensive; aggressive tone when challenged on labor cost awareness.

Growth

Revenue grew 12% YoY, but PAT plummeted 77% as labor costs jumped 35-40% in NCR.

Outlook

Management expects 12-15% revenue growth for FY27, ruling out double-digit EBITDA margins this year.

Risks

Persistent labor shortages, regulatory construction bans (NGT), and lack of labor escalation clauses in private contracts.

Last quarter's promises, checked

Delivered

  • Revenue growth 15-20% → delivered 12% (= PARTIAL)
  • Order inflow target ₹8,000 Cr → delivered ₹10,257 Cr (= BEAT)
  • Net worth > ₹2,000 Cr → delivered > ₹2,000 Cr (= BEAT)

Partly delivered

  • Double-digit margins in FY27 → Now ruled out for current year (= PARTIAL)

Missed

  • EBITDA margin 10%+ → delivered 4.29% (= MISS)
  • PAT growth → delivered -77% YoY (= MISS)
  • Capex ₹300 Cr → delivered ₹274 Cr (= MISS)
Source

Earnings Call Transcript filed with NSE, NSE: AHLUCONT. Summary written with AI assistance from the document.

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Ahluwalia Contracts (India) Ltd: key numbers

Share price
₹585.55
Market cap
₹3,922 Cr
Revenue (annual)
₹4,565 Cr
Net profit (annual)
₹265.9 Cr
P/E (TTM)
17.4×Sector 33.0×
Promoter holding
55.32%+0.00% QoQ
FII holding
14.05%Current quarter

Reference market data from a third-party provider, updated daily. Not a valuation or a recommendation.

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